17 March 2011 RBI Credit Policy :
The RBI raised repo (rate at which it lends to banks) and reverse repo (rate at which it borrows) rates by 25 basis points each, taking repo to 6.75% and reverse repo to 5.75%. However, the CRR has been left unchanged at 6%.
The RBI raised repo (rate at which it lends to banks) and reverse repo (rate at which it borrows) rates by 25 basis points each, taking repo to 6.75% and reverse repo to 5.75%. However, the CRR has been left unchanged at 6%.
The bank also raised March-end inflation forecast around 8% from 7% earlier, leaving GDP growth forecast unchanged at 8.6%. RBI, in its mid-term credit policy said that rising commodity prices was adding to GDP and inflation risk. Also, this upside risk to inflation has stemmed from high crude prices, the report stated adding that industrial production (IIP) continued to be volatile.
The global scenario, the Reserve Bank said portrayed a mixed picture and was likely to persist with current anti-inflationary stance. Further, the report stated that though it was too early to assess the impact on Japan disaster, investment momentum may be slowing down.
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